Earnings Highlights to be Discussed on Joint MDA and DGI Conference
Call at 8:30 am E.T.

February 24, 2017 06:01 AM Eastern Standard Time

WESTMINSTER, Colo.--(BUSINESS WIRE)--DigitalGlobe,
Inc. (NYSE:DGI), the global leader in Earth imagery and information
about our changing planet, today reported financial results for the full
year and fourth quarter ended December 31, 2016.

Full Year Financial Summary:

Grew U.S. Government revenue by 3.3% driven by the addition of The
Radiant Group and an increase in value-added services revenue.

Grew Diversified Commercial revenue by 3.3% due to increased demand
for Global Basemap product suite and strength in other defense and
intelligence sales.

Grew net income 13.7% to $26.5 million, or $0.34 per diluted share.

Expanded net income margin 40 bps to 3.7%.

Grew adjusted EBITDA 7.6% to $382.7 million.

Expanded adjusted EBITDA margin 220 bps to 52.8%.

Net cash flows from operations decreased 8.5% to $301.6 million.

Free cash flow declined 34.1% to $109.6 million due to increased
capital expenditures, including launch insurance, for WorldView-4, and
one time additional payments from our largest customer in the prior
year.

Fourth Quarter Financial Summary:

Grew total revenue 6.1% due to the addition of The Radiant Group and
growth in value-added services revenue.

Net income (loss) decreased to $(9.3) million, or ($0.17) per diluted
share, compared to $10.6 million, or $0.13 per diluted share, in the
prior year, primarily as a result of the $35.7 million loss on
extinguishment of debt recognized in relation to our debt refinancing
in 2016.

Increased free cash flow 70.2% to $49.7 million due to lower capital
expenditures following the launch of WorldView-4.

Recent Highlights:

Successfully launched WorldView-4 on November 11, 2016 and achieved
commercial operations with first DAP customer in February.

Completed the combination with Radiant, a leading provider of
geospatial solutions to the U.S. intelligence community.

Signed Esri and Harris as ecosystem partners, who join additional
development partners and customers including Facebook, Orbital
Insight, SpaceKnow, PSMA, Lockheed Martin and PrecisionHawk, among
others.

Refinanced outstanding debt by entering into a new Credit Facility in
December 2016 and extinguishing our $600.0 million aggregate principal
amount of outstanding 5.25% Senior Notes through a tender offer and
subsequent redemption completed in January 2017.

Completed share repurchase program for a total of 15,365,411 shares at
an average price of $21.82 per share, for a total of $335.3 million.

“We wrapped up a solid year on a high note with our successful launch of
WorldView-4 and the completion of the Radiant Group transaction," said
Jeffrey R. Tarr, DigitalGlobe CEO. “Our improved results reflect solid
execution against our strategy for shareowner value creation and
position us well for 2017. We look forward to continued profitable
growth as we expand our International Defense and Intelligence business
with assured access to our newest high resolution satellite, develop new
commercial use cases, expand our rapidly growing geospatial big data
analytics platform, and realize the full potential of our services
business with the addition of Radiant. Furthermore, we are pleased to
have reached an agreement to combine with MDA as we separately disclosed
today.”

2017 Revenue and Adjusted EBITDA Outlook:

Revenue in a range of $840 million to $865 million.

Adjusted EBITDA in a range of $380 million to $395 million.

Capital expenditures of approximately $100 million.(1)

____________________

(1) Excludes capitalized interest

We have not provided a reconciliation of our Adjusted EBITDA outlook to
forward-looking net income, the comparable U.S. GAAP financial measure,
because it is difficult to reasonably provide a forward-looking estimate
of the reconciling items between such non-U.S. GAAP forward-looking
measure and the comparable forward-looking U.S. GAAP measure. Certain
factors that are materially significant to our ability to estimate these
items are out of our control and/or cannot be reasonably predicted. The
nature of the assets under construction, timing of capital expenditures
and uncertainty of timing of placing assets in service impact certain
components of net income and our ability to reasonably predict net
income. These items include income tax expense, interest expense and
depreciation. Accordingly, a reconciliation to the comparable
forward-looking U.S. GAAP measure is not available within a reasonable
range of predictability.

Conference Call Information:

DigitalGlobe’s management will host a conference call today, February
24, 2017 at 8:30 a.m. ET with MDA management to discuss the transaction
and 2016 fourth quarter and full year financial and operating results.

The conference call dial-in numbers are as follows:

U.S./Canada dial-in: (855) 212-2368

International dial-in: (315) 625-6886

Passcode: 74632653

A replay of the call will be available through March 27, 2016 at the
following numbers:

U.S./Canada dial-in: (855) 859-2056

International dial-in: (404) 537-3406

Passcode: 74632653

DigitalGlobe will also sponsor a live and archived webcast of the
conference call on the Investor Relations portion of its website. Click here
to directly access the live webcast.

Supplemental earnings materials, including conference call slides and
additional prepared remarks, are available on the Investor Relations
section of the company’s website at www.digitalglobe.com.

Cancelling Fourth Quarter Conference Call:

In light of the announced agreement with MDA, DigitalGlobe has cancelled
its conference call to discuss its 2016 fourth quarter and full year
financial and operating results previously scheduled for Monday,
February 27, 2017 at 5 p.m. ET.

About DigitalGlobe

DigitalGlobe is a leading global provider of high-resolution Earth
imagery, data and analysis. Sourced from our own advanced satellite
constellation and third-party providers, our imagery solutions and other
services provide customers with accurate and mission-critical
information about our changing planet, and support a wide variety of
uses, including mission-planning, mapping and analysis, environmental
monitoring, oil and gas exploration, and infrastructure management.
Additionally, hundreds of developers are building new applications and
machine learning algorithms on our Geospatial Big Data platform and in
our recently expanded Services business. Each day users depend on us to
better understand our changing planet in order to save lives, resources
and time.

DigitalGlobe is a registered trademark of DigitalGlobe.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including statements about MDA’s
proposed combination with us, our 2017 outlook and in the management
quotation, contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements relate to future events or future financial performance. We
generally identify forward-looking statements by terminology such as
“may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,”
“intends,” “target,” “projects,” “contemplates,” “believes,”
“estimates,” “predicts,” “potential,” “continue” or “looks forward to”
or the negative of these terms or other similar words, although not all
forward-looking statements contain these words.

Forward-looking statements are based upon our current expectations and
assumptions of future events and are subject to risks and uncertainties
that could cause our actual results or performance to differ materially
from those indicated by such forward-looking statements. With respect to
MDA’s proposed acquisition of us, some of the risks and uncertainties
that could cause actual results to differ include, but are not limited
to: the possibility that we may be unable to obtain required stockholder
approvals or regulatory approvals or that other conditions to closing
the transaction may not be satisfied, such that the transaction will not
close or that the closing may be delayed; the potential adverse effect
on partner and customer relationships, operating results and business
generally resulting from the proposed transaction; the proposed
transaction will require significant time, attention and resources,
potentially diverting attention from the conduct of our business;
changes in political or economic conditions; the anticipated benefits of
the proposed transaction may not be realized; the anticipated and
unanticipated costs, fees, expenses and liabilities related to the
transaction; the outcome of any legal proceedings related to the
transaction; and the occurrence of any event, change or other
circumstances that could give rise to the termination of the transaction
agreement. Additional potential risks and uncertainties that could cause
actual results to differ include, but are not limited to: the loss or
reduction in scope of any of our primary contracts, or decisions by
customers not to exercise renewal options; the availability of
government funding for our products and services both domestically and
internationally; our ability to meet our obligations under the
EnhancedView contract; our reliance on a limited number of vendors to
provide certain key products or services to us; breach of our system
security measures or loss of our secure facility clearance and
accreditation; the loss or damage to any of our satellites; delays in
the construction and launch of any of our satellites or our ability to
achieve and maintain full operational capacity of all our satellites;
loss or damage to the content contained in our ImageLibrary;
interruption or failure of our ground systems and other infrastructure;
decrease in demand for our imagery products and services; increased
competition that may reduce our market share or cause us to lower our
prices; changes in political or economic conditions, including
fluctuations in the value of foreign currencies, interest rates, energy
and commodity prices, trade laws and the effects of governmental
initiatives to manage economic conditions; our ability to recruit, hire
or retain key employees or a highly skilled and diverse workforce;
failure to obtain or maintain required regulatory approvals and
licenses; and, changes in U.S. or foreign law or regulation that may
limit our ability to distribute our imagery products and services.
Additional risks and uncertainties related to the Radiant Group
acquisition include potential loss of key employees and customers of the
acquired business; difficulties managing and integrating operations;
exposure to unanticipated costs or liabilities resulting from the
acquisition; and any changes in general economic and/or
industry-specific conditions. Additional information concerning these
and other risk factors can be found in our filings with the Securities
and Exchange Commission, including Item 1A of our Annual Report on Form
10-K for the year ended December 31, 2015, and will also be available in
our Annual Report on Form 10-K for the year ended December 31, 2016 that
we will file with the Securities and Exchange Commission.

We undertake no obligation to revise or update any forward-looking
statements, except as required by law. Readers are cautioned not to
place undue reliance on any of these forward-looking statements.

Non-U.S. GAAP Financial Measures

EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA are not
recognized terms under U.S. GAAP and may not be defined similarly by
other companies. EBITDA and Adjusted EBITDA should not be considered
alternatives to net income (loss) as indications of financial
performance or as alternatives to cash flow from operations as measures
of liquidity. There are limitations to using non-U.S. GAAP financial
measures, including the difficulty associated with comparing companies
in different industries that use similar performance measures whose
calculations may differ from ours.

EBITDA and Adjusted EBITDA are key measures used in our internal
operating reports by management and our Board of Directors to evaluate
the performance of our operations and are also used by analysts,
investment banks and lenders for the same purpose. Adjusted EBITDA is a
measure being used as a key element of the bonus incentive plan. We
believe that the presentation of EBITDA and Adjusted EBITDA enables a
more consistent measurement of period to period performance of our
operations, and EBITDA facilitates comparison of our operating
performance to companies in our industry.

We believe that EBITDA and Adjusted EBITDA measures are particularly
important in a capital intensive industry such as ours, in which our
current period depreciation is not a good indication of our current or
future period capital expenditures. The cost to construct and launch a
satellite and to build the related ground infrastructure may vary
greatly from one satellite to another, depending on the satellite’s
size, type and capabilities. Current depreciation expense is also not
indicative of the revenue generating potential of the satellites.

We use EBITDA and Adjusted EBITDA in conjunction with traditional U.S.
GAAP operating performance measures as part of our overall assessment of
our performance and we do not place undue reliance on these non-GAAP
measures as our only measures of operating performance. EBITDA and
Adjusted EBITDA should not be considered as substitutes for other
measures of financial performance reported in accordance with U.S. GAAP.

EBITDA excludes interest income, interest expense and income taxes
because these items are associated with our capitalization and tax
structures. EBITDA also excludes depreciation and amortization expense
because these non-cash expenses reflect the impact of prior capital
expenditure decisions which are not indicative of future capital
expenditure requirements.

Adjusted EBITDA further adjusts EBITDA to exclude restructuring and
other re-engineering charges related to specific restructuring and
re-engineering actions because we do not believe these costs are
indicative of the underlying operating performance of our business and
our ongoing operations. The amount and timing of these restructuring and
other re-engineering costs are dependent on the size, type and status of
the specific actions undertaken as part of our restructuring or
re-engineering plans.

Adjusted EBITDA also excludes the loss on early extinguishment of debt,
joint venture losses, net, integration and acquisition costs and the
gain on subsidiary disposition and as these are non-core items that are
not related to our primary operations.

Free Cash Flow. Free cash flow is defined as net cash flows
provided by operating activities less payments for construction in
progress and property and equipment additions (“capital
expenditures”).Free cash flow is not a recognized term under U.S. GAAP
and may not be defined similarly by other companies. Free cash flow
should not be considered an alternative to “operating income (loss),”
“net income (loss),” “net cash flows provided by (used in) operating
activities” or any other measure determined in accordance with U.S.
GAAP. Since free cash flow includes investments in operating assets, we
believe this non-GAAP liquidity measure is useful in addition to the
most comparable U.S. GAAP measure — “net cash flows provided by (used
in) operating activities” because it provides information about the
amount of cash generated before acquisitions of businesses that is then
available to repay debt obligations, make investments, fund
acquisitions, and for certain other activities. There are limitations to
using non-U.S. GAAP financial measures, including the difficulty
associated with comparing companies in different industries that use
similar performance measures whose calculations may differ from ours.

Performance against key metrics:

For the three months ended

December 31,

($ in millions)

2016

2015

Revenue

$

192.7

$

181.7

Net (loss) income

$

(9.3)

$

10.6

Net (loss) income margin

(4.8)

%

5.8

%

Adjusted EBITDA

$

94.4

$

102.4

Adjusted EBITDA margin

49.0

%

56.4

%

Net cash flows provided by operating activities

$

86.9

$

92.2

Free cash flow

$

49.7

$

29.2

For the year ended

December 31,

($ in millions)

2016

2015

Revenue

$

725.4

$

702.4

Net income

$

26.5

$

23.3

Net income margin

3.7

%

3.3

%

Adjusted EBITDA

$

382.7

$

355.7

Adjusted EBITDA margin

52.8

%

50.6

%

Net cash flows provided by operating activities

$

301.6

$

329.7

Free cash flow

$

109.6

$

166.3

Net income margin is calculated by dividing net income by U.S. GAAP
revenue. Adjusted EBITDA margin is calculated by dividing Adjusted
EBITDA by U.S. GAAP revenue.